Hyderabad: "Health is wealth, which means when you have good health, you have everything in life." However, these days, we need money to keep our health in good stead. Only when financial health is good, we will be able to achieve our goals. Like going for regular checkups to know about the well-being of our health, we should also need to review our plans from time to time to avoid financial stress.
According to a survey, financial instability is the cause of stress for many people and it is leading to many health-related issues. Particularly, after Corona, the stress has shot up. In this context, meticulous financial planning is required to alleviate the pressure. Children's education, their marriage, retirement plans and financial backing for the family if something untoward happens. With so many goals to achieve and plans to pool up resources could lead to stress. However, if we go with a perfect financial road map, we will be able to cope with stress. So, to achieve financial goals we need to follow certain tips.
Read: Why financial planning is important for your future?
Savings and expenses: It doesn't matter how much you earn, but how much you save out of it counts. To avoid financial stress in the future, it is better to save 30% of your earnings. If you are able to save more, it is well and good. Expenses are like uninvited guests. So, it is better to save some money for emergency purposes. It is better to keep 15% of the total earnings of the year as savings or keep some money to cover expenses for at least three months. These savings should be either in the form of fixed deposits or liquid funds. Debts should never exceed 50% of the value of your assets. Make a list of your assets and liabilities once. If it exceeds the required ratio .. be prepared to come up with ideas to reduce them.
EMIs and insurance: The EMIs should be less than 40% of your monthly income, otherwise, you'll have to face financial stress. You should also include credit card payments into this account. Life insurance should be up to 10-15 times of annual income. The lumpsum amount should also cover debts and other liabilities. Do not forget to take health insurance for not less than Rs 10 lakhs for the whole family.
Children's education: Keeping in mind the rising cost of education, investments should be planned. Investment plans should be picked based on the required amount and period of payment besides moving forward with your existing investments. Just with financial planning, it will be difficult to overcome financial stress. But, you can prepare a road map to avoid hiccups to some extent, which will give us loads of confidence, says Vikas Singhania, CEO, Tradesmart
